Ahmnodt, state and municipal employees do not lay asphalt, pour concrete, rivet steel, or build buildings. Those tasks are contracted out to business professionals who do the work for them. Most government employees either push paper or herd masses of people in such roles like the police state. Yes, some do small repairs–a pothole here (amazing!), a broken fence there–and maintenance of the physical assets of government such as traffic and street lights. So yes, they will hire these firms to do that work.

The problem, though is that the government should not be creating jobs. It should be getting out of the way of the private sector creating jobs, and doing that by not messing with the economy through money manipulation, regulation, prohibition, or taxation.